Categories: Precious Metals
Topics: General Precious Metals

Outcrop Silver & Gold (TSX-V: OCG)(OTC: OCGSF) CEO Joe Hebert on Discovery of Two Additional High-Grade Vein Shoots at Flagship Santa Ana Silver-Gold Project, Colombia

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Outcrop Silver & Gold — Mr. Joe Hebert. Joe, how are you today?

Joe Hebert: I'm very well, and it's a pleasure to be with you.

Gerardo Del Real: It's great to have you back on again. We spoke maybe a week or a week and a half ago, and we talked about the upcoming catalysts; amongst those, pending assays and then, of course, a resource estimate that is upcoming. 

Now, you had some news today that's got to really help advance the confidence that this is going to continue to grow. And by this, I mean the two new additional high-grade shoots that you just identified. You intercepted, I should say, an intercept of 2.2 meters of 2,790 grams [per tonne] silver equivalent at Santa Ana, and, as I mentioned, you added two high-grade shoots to the potential resource. 

I would love for you to provide some context on the news. And again, congrats, because you're doing exactly what you said you were going to do the last time we spoke.

Joe Hebert: Yeah, I mean, it's encouraging to us. Those shoots… we’re basically two-for-two on testing targets on newly-permitted ground so we're happy to see that. That is going to push us towards a milestone of meeting what we want to do with the resource report this year. 

It'll be an important company milestone because it'll be bringing our high-grade discovery to the next stage of value, which is a resource report. And that will be before the end of 2022. Hitting that kind of mineralization, I have to honestly say, sometimes it still surprises me, the high values, but it certainly is fun to see the assays come in.

Gerardo Del Real: You talked about, in the release, about every shoot discovered expanding the potential resource area. You have 12 kilometers of untested vein zones. This is a 100%-owned historic project that's already produced, right? This is a past-producing mine; it produced 7.8 million ounces of silver. 

How excited does the team get, from a technical perspective, when you come out of the gate two-for-two and you have 12 kilometers of untested vein zones to test?

Joe Hebert: Well, the team is really enthusiastic. They like what they're doing; they're good at it. And I tell you what… one big tell from that Frias Mine, which you're referring to, which we own, it’s on our property, it really has a very small footprint. 

We really look at it as an analog, or an equivalent example to any one of our 10 shoots. Not that every one will be 7.8 million [ounces of silver] but it certainly is a framework of how to think about the potential of these shoots we're drilling, including the two shoots we just discovered.

Gerardo Del Real: Excellent! I want to stress how important it is that you are permitted and you have drill rigs onsite. You have a third rig that's being mobilized in March. It can be difficult if you don't know the country well and the way that the country works and approach the social license with a responsible approach… it can be difficult in Colombia for outside groups to come in and advance a project the way that you've been able to. 

We touched on it the last time we spoke but I think you should be commended for being one of the few companies there that's doing the kind of work that you're doing without encountering much, if any, opposition. Is that accurate?

Joe Hebert: Yes, it's very accurate because I think what we can say is that ‘word travels fast’ from the community of Falan where we're concentrated now. We've actually got 10 easements all set to go around the Frias Mine itself. That's an amazing accomplishment in that amount of time. It just shows the confidence that the larger municipalities have in Outcrop, and we're just teeing up additional targets along that 12-kilometer trend. 

Gerardo, before I forget, I should say that we have an internal guidance on that maiden compliant resource of between 45 million and 55 million silver equivalent ounces between 550 and 750 grams equivalent silver per tonne. So not an insignificant first maiden resource and not in that great amount of time.

Gerardo Del Real: When you talk about silver equivalent, because I think it's important to clarify, how much does silver contribute to those totals there?

Joe Hebert: There is a small, almost nominal, lead-zinc. When I say the 550 to 750 [grams equivalent silver per tonne], the average for all of our shoots representative across the whole broad range of mineralization is actually 1,400 grams [silver equivalent per tonne]. 

That larger number is undiluted, of course. But that 1,400 grams [silver equivalent per tonne] is made up of 7.52 grams [per tonne] gold and 860 grams [per tonne] silver. So roughly 70:1 silver-to-gold and a robust gold number and nominal lead-zinc.

Gerardo Del Real: Excellent! Joe, I'm looking forward to having you back on. Congrats on some great hits and a great start to receiving these assays. I'm assuming you're anticipating assays to continue to come in here over the coming weeks?

Joe Hebert: Yes, that's correct. We have some in the lab and we expect some results adjacent to some of the drilling we just did.

Gerardo Del Real: Excellent. Always a pleasure, sir. Thanks for your time.

Joe Hebert: Okay, thank you. We'll catch you later.